Death of the Gondola: Evolving your Brand for the New Retail Reality

2 | Death of the Gondola | Institute for International Research | 15 July 2014

Hilet’s go on a little trip...

1. How far have we come?2. The “Glorified Stockroom”3. Imagine if you will…4. We’re making progress5. We’ll leave you with this


1. How far have we come?


Well, it’s a mess.

Photo Credit: http://brianjpankratz.files.wordpress.com/2013/01/store-overview.jpg


Our old friend the Gondola.


Since the idea was first executed in

1897...

Photo Credit: https://www.google.com/patents/US618510, https://www.google.com/patents/US3770135


53 countries have grown to

196...


1903

2007

1

853

passenger

passengers

Photo Credit: http://www.wright-brothers.org/Information_Desk/Just_the_Facts/Airplanes/Wright_ Airplane_images/1903_Flyer_I/1903_Flyer_Front.jpg,


0 passengerspassengers

2014

Photo Credit: http://media.defenceindustrydaily.com/images/AIR_UAV_MQ-9_Reaper_Armed_Frontal_Taxiing_lg.jpg


MOON...We’ve put a man on the

Photo Credit: http://space-facts.com/wp-content/uploads/moon-transparent.png


The land speed record has skyrocketed over

700 MPH

Photo Credit: http://www.modelcar.de/picall/modellautobilder/785b.jpg


This man made the first radio voice transmission in 1900, it went

1 mile

While this man can now talk to his family from anywhere in the

WorldPhoto Credit: http://www.circuitstoday.com/wp-content/uploads/2013/11/Reginald-Fessenden.jpg


And your coffee today that cost you

$3.00


Would have bought you

800 cups

Photo Credit: http://hisplace-international.com/wp-content/uploads/2014/07/coffee-cup-to-go-art-9.jpg


But this...


...Still looks like this?

Photo Credit: http://www.gettyimages.com/detail/photo/woman-checking-food-labelling-royalty-free-image/160425004

2. The “Glorified Stockroom”



Stores basically boil down to what we call a “glorified stockroom”, it’s a prettied up area where products are held

Aisles upon aisles of shelves aren’t conducive to creating an experience that shoppers enjoy

Stores are boring


Packaging

Gondolas restrict the creativity that companies could have with packaging development

Communication

Conversation with the customer is limited to overhead signs

Education

Available space for educating consumers about products and your store is non-existent

We’re limited by the fixture

Photo Credit: http://www.gettyimages.com/detail/photo/chewing-gum-on-a-supermarket-shelf-royalty-free- image/88624372 http://brianjpankratz.files.wordpress.com/2013/01/store-overview.jpg


We’ve made strides with “dressing it up”

Photo Credit: http://99designs.com/designer-blog/wp-content/uploads/2012/07/04-shelf-impact.jpg


It’s called a chore... for a reason


The lack of innovation experienced in the retail industry has led to a stagnant shopping experience

Shoppers are on auto-pilot in all categories in choosing what and where they buy

With how easy it is for todays consumers to simply go to an online retailer like Amazon and set up recurring deliveries for a broad spectrum of products, something exciting and new has to be done to drive in-store traffic


It’s time to say goodbye to the gondola

The gondola is archaic compared to some of the advancements that have been made in the last century. Over 100 years of design are represented here, but they could easily belong to the same patent

Photo Credit: https://www.google.com/patents/US618510, https://www.google.com/patents/US3209709, https://www.google.com/patents/US4722284, https://www.google.com/patents/US5472103, https://www.google.com/patents/US6345795, https://www.google.com/patents/US8365928, https://www.google.com/patents/US8646618


It’s time to kill the gondola

Photo Credit: http://www.gettyimages.com/detail/photo/surprised-woman-holding-clipboard-in-conference-royalty-free-image/104821260


Why? Because shoppers are demanding it!

Source: Watermark Consulting


In mature markets experience is becoming the battleground

Poor customer experiences result in an estimated $83 Billion loss by US enterprises each year because of defections and abandoned purchasesParature Customer Service Blog

The average annual value of each customer relationship lost to a competitor or abandoned is $289Genesys Report: The Cost of Poor Customer Service


Experience creates value

Drives choice

Commands premium

Engendersloyalty

Customer power has grown, as 73% of firms trust recommendations from friends and family, while only 19% trust direct mailForrester Research Blog

86% of consumers will pay more for a better customer experienceRightNow Customer Experience Impact Report 2011

89% of consumers began doing business with a competitor following a poor customer experienceRightNow Customer Experience Impact Report 2011

3. Imagine if you will...



One brainstorm, that asked a simple question...

What if we weren’t constrained by the gondola?

It was fun...


We took 4 of the least enjoyable areas of a typical

grocery store and we re-imagined them

1. Canned Produce

2. Cereal

3. Laundry

4. Pharmacy


We made one small assumption...

That technology would enable us to deliver the product at the end of the shopping journey or right to the customers home


1. The Canned Produce Aisle


The Canned Produce Experience


2. The Cereal Aisle


The Cereal Experience


3. The Laundry Aisle


The Laundry Lab Experience


4 .The Pharmacy Aisle4 .The Pharmacy Aisle


The Wellness Experience

The possibilities...

...Are endless! As soon as we aren’t just warehousing SKUs we can create transformation through:

- Meaningful Storytelling

- Seamless Digital integration

- Intuitive Experiences

- Drama & Theater


4. We’re making progress



Photo Credit: http://www.marketinginautomotive.com/wp-content/uploads/2013/04/DSC_0490.jpg


Photo Credit: http://en.wikipedia.org/wiki/Desigual#mediaviewer/File:Desigual_shop.jpg


Photo Credit: http://4.bp.blogspot.com/-vHTxc9zU_pY/T8AAGwc1D5I/AAAAAAAAAQs/d3ClrpNW9_o/s1600/IKEA_Singapore.jpg


Photo Credit:http://en.webrazzi.com/wp-content/uploads/2014/04/apple-store-12.jpg


Photo Credit:http://www.ecologos.it/portfolio-items/negozio-leggero/#prettyPhoto[‘gallery’]/12/

5. We’ll leave you with this...



Here is a simple set of principles that all great retail

experiences share. Just ask yourself, does your strategy/

design/experience deliver? Are you excited to shop it

yourself? Are you proud enough to blog about it?

Here they are...

How do you create/unlock your brand’s potential?

The four principles of experience design

1. Emotion - hit people at the gut level

2. Simple - people need to immediately get it

3. Honest - keep it real

4. Memorable - needs to stay with them


If we don’t take the lead, who will?


WHAT’S DANGEROUS IS

– JEFF BEZOS

NOT TO EVOLVE.“

“

BRANDS HAVE THE POWER TO CHANGE THE WORLD

Thank you!Interested in discusing your own retail challenges? Please contact Scott Smith:

[email protected] + 937-312-8904